UPM Annual Report 2025

We are UPM

Governance

Accounts and performance

Our strategy

UPM in brief

Our businesses

Sustainability

Advanced materials The advanced materials businesses offer technically demanding materials for growing end uses. The businesses require less capital than other UPM businesses and are well positioned to pursue focused growth in the coming years. Market growth: ++ Improve competitiveness Focused growth World-class businesses

Renewable fibres UPM Fibres offers sustainable, high-quality hardwood and softwood pulp, and sawn timber products worldwide. Its strong asset base and capabilities provide opportunities to increase capital efficiency and generate strong cash flow. Market growth: +

Improve competitiveness

Focused growth

World-class businesses

Adhesive Materials

Fibres South

• Actions to sharpen com petitiveness and restructure production footprint • Closed production in two fac tories in Nancy, France, and in Kaltenkirchen, Germany

• Growth faster than the markets in 2025 • Investments to grow in

• Strong position globally on the growing label materials markets • Establishing a solid position in attractive graphics markets

• Optimization of wood sourcing and inbound

• Planning capex-efficient debottlenecking to unlock further potential

• 3.4m tonnes eucalyptus pulp • World-class low-cost platform, including highly productive plantations

logistics, as the plantations increasingly reach maturity by 2027

advanced labels in the U.S. and to strengthen asset base in Southeast Asia • Acquired Metamark, continu ing to build position in graphics

Fibres North

Specialty Papers

• Strategic partnership with Versowood to strengthen pulp wood supply in Finland • Flexible operating mode at all mills, efficiency measures

• 2.4m tonnes, mainly softwood pulp • UPM Forest in Finland has been included in Fibres North from January 2026 onwards

• Decreased variable costs, efficiency measures

• Flexible paper-based packaging development • Capacity to grow with low investments

• Strong position globally on growing label and release base materials markets • Solid position on the promis ing renewable flexible packag ing materials markets

Communication papers Focus on performance and cash flow. Market growth: -

Plywood

• Strong production efficiency in the second half of the year

• Strategic review initiated • Launched a new solution to supply the strong demand in LNG shipping

• Strong position in Europe and globally in LNG

Improve competitiveness

World-class businesses

Communication Papers

• Planned graphic paper Joint Venture with Sappi • Closed paper production at UPM Kaukas (300,000t) in Finland and UPM Ettringen paper mill (270,000t) in Germany during Q4 2025 • Combined reduction: 13% of capacity, €70 million of annual fixed costs • Sold the earlier closed Plattling paper mill site, Germany

• Reliable supplier of sustainable communication papers, cost-efficient operations • Strong 2025 free cash flow at €362 million

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UPM Annual Report 2025

UPM Annual Report 2025